Samsung Electronics has reported its highest third-quarter operating profit in three years, fueled by a sharp rebound in semiconductor prices and surging demand for artificial intelligence (AI) chips. The company’s strong performance highlights how the global AI boom is reshaping the tech industry’s fortunes—especially for leading memory chip suppliers.
Samsung’s semiconductor division—the company’s largest profit driver—recorded a 277% surge in operating profit to 9.18 trillion won ($6.65 billion) in Q3 2025, marking its best result since 2022[1]. The dramatic jump comes after a period of weak demand and falling prices for memory chips, with a notable 21% drop in operating profit earlier in the year[1].
Analysts attribute the turnaround to the rapid growth of AI applications, which have driven up prices for advanced memory products such as HBM3E (High Bandwidth Memory) and DDR5. These chips are critical for training and deploying large-scale AI models, including those used in platforms like ChatGPT and other generative AI tools.
Notably, Samsung has secured more than half of Nvidia’s HBM3E orders, thanks to a successful quality audit and certification. This partnership is a key factor in Samsung’s profit growth, as Nvidia’s GPUs—such as the H100 and B100—require large quantities of HBM memory for AI workloads[1].
Samsung’s deepening collaboration with Nvidia extends beyond memory supply. The companies are jointly developing advanced 3nm and 2nm chip manufacturing processes, and Samsung is incorporating Nvidia’s “Digital Twin” technology to optimize its production lines and improve yields[1]. This integration is part of a broader strategy to move from being a cost-competitive manufacturer to a strategic innovation partner.
Public endorsements from Nvidia CEO Jensen Huang have further bolstered Samsung’s position. “I have confidence that Samsung will succeed with HBM. I have confidence like tomorrow is Wednesday,” Huang stated at CES 2025[1]. Such support is critical in a market where quality certifications can determine a supplier’s access to the most advanced AI chip supply chains.
Despite the positive momentum, Samsung faces ongoing challenges. The company’s foundry business continues to struggle with low utilization rates at mature nodes, and it trails competitors like SK hynix in the development of next-generation HBM4 memory technology[1]. Additionally, geopolitical tensions and potential supply chain disruptions remain risks to watch in the coming quarters.
Nevertheless, Samsung’s focus on next-generation products—such as 8th Generation V-NAND and AI-specific memory solutions—demonstrates its commitment to regaining leadership in the semiconductor industry[1]. Investors have taken note: Samsung shares are up 18% year-to-date, outperforming broader tech indices.
Samsung’s Q3 results underscore the transformative impact of AI on the global semiconductor market. As demand for AI training and inference continues to surge, Samsung’s strategic alignment with leading AI chip makers positions it for sustained growth—even as it navigates lingering challenges in its foundry and older memory businesses[1]. For now, the company’s recovery appears durable, with AI-driven demand expected to remain a key driver of future profitability.
In sum, Samsung’s latest earnings confirm that the company is not only surviving but thriving in the AI era—thanks to relentless innovation, strategic partnerships, and a timely pivot to meet the needs of the world’s most advanced computing applications[1].
Stay Informed with the Latest news and trends in AI
The Domain has been successfully submitted. We will contact you ASAP.
